How the focus of regulators trickles down to advisors.
A good example of this was the Finra priority letter that came out in January.
Some firms have responded by being even more restrictive with who they are willing to bring on. Some have even gotten rid of advisors that have marks on their records.
Here’s the problem- applying stats doesn’t tell the whole story.
1) Compromises with creditors.
2) Settled complaints that the advisor doesn’t have control over.
3) Terminations for reasons that are self-serving for the bd.
I talk to advisors every day. There are always two sides to a story.
Here is what advisors can do.
1) Know what’s on your record, hire an attorney for advice on whether there are marks that can be taken off.
2) Know what a “yes” answer is and do everything you can to not get one.
Example- don’t settle if possible, don’t settle with creditors, and avoid liens at all costs.
Now more than ever advisors need to protect their records because regulators are focusing on advisors with marks. Not to be taken lightly.